Challenging the Premisses
| Start with the debt problem, three views of it,
and the most important thing. Here's a longer look at the debt problem.
Here's a short one on economic policy, some surprising trends, and a few unusual policy recommendations. How'd we get into this mess? Read Policy Venn and Policies of the Venn Overlap. Still with me? Read A Matter of Life and Death. And for an overview, download my 12-page PDF |
Components of Interest Paid
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| Graph #1: Components of Interest Paid, as Percent of GDP Households (blue), Federal (green), and US Business (red) |
1 comment:
Hi Art
Your graph today and graph#2 from your last post seem to support my conclusion that supply side economics was a fraud.
The theory was that by giving tax breaks to corporations and the wealthy the money would be used for productive capital investments. That might work when there is a shortage of supply of production and a surplus of demand for production but when there is no such imbalance between supply and demand then where is the money going to go? Graph#2 in your last post answered that question.
Your graph#1 today shows interest income (which I assume is equal to interest paid) is back to 1970 levels which seems to me to be a predictable outcome of too much invested in financial assets. What's interesting about Graph#1 is that it appears businesses were paying a lot of the interest while at the same time holding a lot of the financial assets.
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